U.S SEC Delays Ark Bitcoin ETF Proposal; Seeks Feedback

• The purpose of this exercise is to decide whether or not to adopt the proposed rule change.
• The US SEC has effectively postponed a decision on whether or not to approve the ETF.

The U.S. SEC released a notice inviting comments on the proposal to list the Ark Spot Bitcoin ETF on Friday, amid significant anticipation leading up to the deadline. The notice was released in order to gather feedback on the proposed rule change to allow the ARK 21Shares Bitcoin ETF to list and trade.

The purpose of this exercise is to decide whether or not to adopt the proposed rule change, and interested parties are encouraged to share their thoughts on the proposal.

U.S. Securities and Exchange Commission (SEC) launched a comment period in July 2023 for investors, traders, and the general public to provide their thoughts on Bitcoin ETF applications. Spot ETF registrations from large asset managers like Blackrock and Fidelity have boosted the cryptocurrency market during the last two months.

Effectively Postpones Decision

By invoking the public comment period, the US SEC has effectively postponed a decision on whether or not to approve the ETF. The delay was, however, consistent with predictions. The first filing due date for Ark Invest was set for Sunday, August 13, 2023.

The agency cautioned, however, that the public comment process in no way indicates that it has formed any judgments on the problems posed by the proposal. After the public has had three weeks to comment on the plan, the SEC will have five weeks to reply to those comments.

Ark Invest CEO Cathie Wood told Bloomberg on Monday that although her company’s application would likely be delayed, the SEC will mostly accept multiple applications at once.

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